Can mobile operators sell mobile profiles to Internet companies?

by: Bena Roberts Tuesday, March 11th, 2008

One of the most impressive presentations at Web 2.0 in Berlin came from Rui Mascerenhas Head of Multimedia at Sonaecom (Optimus Portugal).

He didn’t beat around the bush and highlighted the development of mobile and trends in the mobile or converged space over the past ten years. It proved fascinating food for thought and Rui touched on some very important points.

The first was
1. We are moving from portals to communities – this is great but how do we make money?
His answer to this question was clear, concise and did make my eyes open. Finally it seems operators’ understand what needs to be done to actually compete and not be trampled by the bigger Internet players.

What?
1. Mobile Operators might need to be a dumb pipe initially to learn from the Internet players and to use the Internet brands to engage consumers and get the all important traffic.

2. But after this operators should be focusing on their own advertising solution, marketplace and network and stop revenue share.

3. The operators have the assets and mobile operators more knowledge of their customers than anyone else.

4. Profiles for advertising, targeting, communities, commerce etc are vital.

5. Operators should make money by selling profiles to advertising and Internet companies.

Yikes – I nearly fell off my chair.

He then pointed out how the walled garden, the soft key and idle screen were the most valuable assets on mobile. They would remain the most important assets in the next 3 to 5 years and mobile operators must utilise them.

Now, I have to say for the first time in very long time I was stumped. What would the implications for this be – if it were to happen?

There is a lot of talk about operators as dumb pipes but if operators moved to a different business model – one that was focused on making money rather than pushing the brand – what would happen?

Well, I suppose there is a thin line between brand identity and managing advertising. The portal and phone and service is all still operator owned – so brand identity shouldn’t come into play. But what about off-portal where other brands rule? Perhaps selling brands and media/internet companies’ data would be a huge money spinner for operators?

Furthermore the implications of “selling” mobile profiles is even more intriguing as advertising agencies do it and if operators did it would they become advertising agencies. Could this be the turning point in the 2.0 space in the next five years? Where off-deck profiles and not the idle screen becomes the real estate that mobile operators can sell?

Well to be honest I don’t know the answer. But thinking like this does open up a whole new ball game for all in the mobile space.

Portugal is a very dynamic market and Optimus is one of the aggressive players with at strong youth mobile, consumer play. If anyone is going to challenge the status quo then this is the company.